Kimura Case

In order to establish and secure a competitive advantage, Pramtex's strategy is focused on production of advanced technology and high quality CD equipment. Pramtex focuses on research and innovation clearly and prides itself on its ability to produce innovative and cutting edge technology solutions that it intends to sell at a premium price vis-a-vis its competitors. Pramtex intends to take advantage of the Japanese market and to leverage its relationship with Kimura K.K. to achieve this. The following comprises the key strategy flaws of Pramtex management:

* Paid little or no attention to its clients needs: One of the most important factors in any business is customer/client service, hence the phrase 'customer is king', and the success of any business hinges on its ability to retain its clients and eventually attract more customers. Pramtex is too preoccupied with the production of 'state of the art' manufacturing solutions while not paying sufficient attention to or actually intentionally ignoring its customers' specific needs (e.g., Kimura explained its corporate strategy to Pramtex, and made adjustments to the displays of its Pramtex machines). Pramtex also delivered the products late after Kimura's emphasis on the importance of timely delivery and did not respond promptly and effectively to Hashimoto's second request for a quotation.

* Very Poor Customer Service: Though Pramtex enjoys a reputation for the production of high quality (and consequently highly priced) machinery, they lack a customer service culture. The company neglects clients' expectations in the sense that superior prices charged should also result in superior post purchase service. Moreover, Pramtex does not consolidate customer interaction through one client relationship manager; this lack of centralized management leads to fragmented interactions with Kimura, which ultimately reflects poorly on Pramtex's client management and project execution capabilities. Indeed, Kimura's frustration with Pramtex's lack of organization, ability to mobilize internal resources (e.g., diagnosing and repairing faulty machinery) and attention to detail is palpable.

* Ignored the low end market and the importance of flexibility: Pramtex was losing market share to competitors like Singulus, who, despite producing technologically less sophisticated machines at lower prices to satisfy the lower end of the market, also sought and found partners with whom they could start developing more advanced products, ultimately eating into Pramtex's market share. Though Pramtex knew that its competitive advantage was being threatened, it did not respond to this development by diversifying production. This is further illustrated by the company's unwillingness to consider Kimura's demand for lower sophistication and simpler use of machinery.

Essentially, Pramtex is a product and sales oriented company. It focuses on internal operations and technology to the detriment of its clients. It engineers products that do not fit clients' needs and sells its wares without being able to live up to post purchase service expectations. The points highlighted above are flaws in the company's strategy that have led to the loss of current as well as potential future customers; this occurred in Japan in part because Pramtex was unable to take advantage of Kimura's position and influence in the industry.

2. Who are the key players at Kimura in the purchasing decision? What are